PKG stock: buy or sell?

PKG stock price: $98.09 -3.00% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

1

Packaging Corporation of America shares slipped -3.00% to $98.09 today.

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products primarily in the United States.

Should I buy PKG stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Packaging Corporation of America stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean PKG will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Packaging Corporation of America stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we collected 9 ratings published for PKG stock in the last 30 days.

Is PKG a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-15KeyCorpSector WeightUnderweight
2019-7-12Seaport Global SecuritiesBuyNeutral
2019-6-24UBS Groupn/aBuy
2019-5-15UBS Groupn/aBuy
2019-4-5Bank of AmericaBuyBuy
2019-4-25KeyCorpn/aHold
2019-4-16Bank of AmericaBuyNeutral
2019-1-9Wells Fargo & CoOutperformMarket Perform
2019-1-7CitigroupNeutralNeutral

PKG stock analysis

Daily outlook

Packaging Corporation of America slipped a shocking -3.00% and closed at $98.09.

Packaging Corporation of America slipped a shocking -3.00% and closed at $98.09. Since price and SMA200d lines crossed up on June, PKG climbed $4.13 (4.40%). On June, SMA100d and SMA200d crossed up triggering a rise of 3.35%.

PKG stock chart (daily)

Weekly outlook

Shares of Packaging Corporation of America dropped an awful -3.15% this week.

Packaging Corporation of America stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Late May, SMA20w and SMA40w crossed up triggering a rise of 8.67%. Trading stocks that are under the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support.

PKG stock chart (weekly)

PKG stock price history

PKG stock went public on January 28th, 2000 with a price of $7.051. Since then, PKG stock surged a 1,291.30%, with an average of 68.00% per year. If you had invested $1,000 in PKG stock in 2000, it would worth $12,913.00 today.

1: Adjusted price after possible price splits or reverse-splits.

PKG stock historical price chart

PKG stock reached 52-week highs on September at $115.98, and all-time highs 2018-01-26 with a price of 125.55.

PKG stock price target is $99.50

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 6 price predictions for Packaging Corporation of America stock:
PKG stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-15KeyCorpDowngradesn/a$89.00-
2019-6-24UBS GroupSet Price Targetn/a$106.00-
2019-5-15UBS GroupInitiatesn/a$109.00-
2019-4-5Bank of AmericaReiterates$105.00$112.006.7%
2019-1-9Wells Fargo & CoDowngrades$110.00$93.00-15.5%
2019-1-7CitigroupLowers Target$98.00$88.00-10.2%
(in average)$104.30$99.50-5.0%
The price target for Packaging Corporation of America stock is $99.50, moving in a range between $112.00 and $88.00. In average, analysts' outlook on PKG price forecast is negative, reducing the forecast by a -5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Packaging Corporation of America presented its last earnings report, it remained constant a tiny 1.30%. Unfortunately, reported EPS is not yet available in our database.
PKG earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.52n/a
2017-Q32017-10-251.681.680.0%
2017-Q42018-01-301.511.563.3%
2018-Q12018-04-241.531.551.3%
2018-Q22018-07-251.972.085.6%
2018-Q32018-10-242.152.233.7%
2018-Q42019-01-292.152.170.9%
2019-Q12019-04-221.97n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Packaging Corporation of America annual revenues jumped a very good 8.84% to $7,014.60 million USD from $6,444.90 marked in 2017. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) stayed steady a 0.15% to 10.52%.

Packaging Corporation of America fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Packaging Corporation of America TTM sales up to March 2019 were $7,057.60 and earnings $784.70 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Packaging Corporation of America business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, remained stable a tiny 0.61%. Regarding profit margin, Packaging Corporation of America remained stable 0.60% to 10.52%

PKG annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$3,670 M-$436 M11.9%-
2014$5,853 M59.47%$393 M6.7%-10.01%
2015$5,742 M-1.89%$437 M7.6%11.26%
2016$5,779 M0.65%$450 M7.8%2.93%
2017$6,445 M11.52%$669 M10.4%48.71%
2018$7,015 M8.84%$738 M10.5%10.38%
TTM $7,058 M0.61%$785 M11.1%6.33%

Quarterly financial results

Packaging Corporation of America reported $1,733.70 million in sales for 2019-Q1, a -0.73% less compared to previous quarter. Reported quarter earnings marked $186.80 million with a profit margin of 10.77%. Profit margin remained stable a -0.94% compared to previous quarter when profit margin was 11.71%. When comparing sales to same quarter last year, Packaging Corporation of America sales marked a slightly fine growth and appreciated a 2.55%. Looking back to recent quarterly results, Packaging Corporation of America posted 2 negative quarters in a row.
PKG quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,580 M-$142 M9.0%-
2017-Q3$1,640 M3.80%$138 M8.4%-2.82%
2017-Q4$1,684 M2.70%$269 M16.0%94.86%
2018-Q1$1,691 M0.37%$140 M8.3%-47.90%
2018-Q2$1,768 M4.55%$187 M10.6%33.19%
2018-Q3$1,810 M2.40%$207 M11.4%10.77%
2018-Q4$1,747 M-3.50%$205 M11.7%-1.02%
2019-Q1$1,734 M-0.73%$187 M10.8%-8.70%

Packaging Corporation of America ownership

When you are planning to buy shares of a company, it's worth to check its ownership structure.

Packaging Corporation of America shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 1.24% of all shares.

Bearish positions for PKG stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Packaging Corporation of America:

PKGCLWGLTGPKIP
Market cap$9.3 B$268.5 M$634.9 M$4.0 B$15.4 B
Total shares94.5 M16.5 M44.1 M295.3 M397.3 M
Float shares92.5 M16.2 M43.2 M275.3 M386.4 M
  - Institutional holdings (%)89.6%89.5%102.7%118.9%83.5%
  - Insider holdings (%)1.2%3.0%2.0%0.8%0.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

PKG summary

Friday, August 23rd, 2019
Open$100.41
Close$98.09
Day range$97.62 - $100.99
Previous close$101.12
Session gain-3.00%
Average true range$2.09
50d mov avg$98.85
100d mov avg$97.44
200d mov avg$95.01
Daily patternlt11c
Weekly pattern lt06a

Packaging Corporation of America performance

To better understand Packaging Corporation of America performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare Packaging Corporation of America to Clearwater Paper, , Graphic Packaging, International Paper and Westrock:
Stock3m6m12m
PKG8.67%1.42%-8.49%
CLWClearwater Paper-9.47%-52.04%-43.48%
GLT-3.81%3.97%-18.91%
GPKGraphic Packaging5.35%6.69%-3.94%
IPInternational Pap...-8.00%-14.82%-21.51%
WRKWestrock-5.93%-15.54%-38.84%

Packaging Corporation of America competitors

One check before trading any stock is to review a list of its competitors, in this case for Packaging Corporation of America. We selected 5 companies as Packaging Corporation of America competitors as they are in the same industry or have similar market objectives.

Latest PKG stock news